Woman Claims Debt Collectors Waited Too Long

A woman who secured a personal bank loan and never made any payments on it has filed an unfair debt collection lawsuit against the collection agency and the law firm hired by the collection agency to sue her, alleging that the statute of limitations for the debt had passed.

Joan N. of Wisconsin filed an unfair debt collection lawsuit against LVNV Funding and the law firm of Messerli & Kramer. According to the Fair Debt Collection Practices Act (FDCPA) lawsuit, Joan took out a loan with Citibank sometime before June 2008 and spent the money on herself and household expenses. She never made any loan payments.

Sometime after she took out the loan, but before December 2008, Joan maintains that she was the victim of identity theft.

LVNV Funding acquired the debt for the purpose of collecting on it. LVNV then hired Messerli & Kramer to do so. On June 2, Messerli & Kramer filed a debt collection lawsuit against her.

Messerli & Kramer had no authority to file a lawsuit against Joan because at the time of the filing, the statute of limitations – six years in Wisconsin — had passed, according to her FDCPA lawsuit.

Further, in the lawsuit naming Joan as defendant, Messerli & Kramer asserts that the last payment on the account was made in August 2008, yet Joan states that is false. Her FDCPA lawsuit states she never made any payments on the loan.

According to Joan, the purported record of payment was not a payment at all, but rather an indication of a credit to the account made by the creditor.

Joan claims that LVNV Funding and Masserli & Kramer filing a lawsuit against her and claiming that the filing was “lawful and timely” was actually “false, deceptive and misleading given that at the time Defendants filed the lawsuit for the Debt the statute of limitations for the Debt had passed.”

According to Joan’s unfair debt collection lawsuit, LVNV Funding and Masserli & Kramer violated the Fair Debt Collection Practices Act by using false, deceptive, misleading and unfair means to attempt to collect the debt.

Debt collectors are prohibited from making false statements and engaging in deceptive practices, attempting to collect debts that have expired or are not owed (such as those discharged in bankruptcy or debts previously settled), making improper reports to credit reporting agencies and contacting third parties, such as family members or employers, in an effort to collect the debt.

If a debt collector is found to have violated the FDCPA, the debtor is entitled to receive $1,000 in statutory damages, plus any actual damages that they have suffered.

Join a Free Unfair Debt Collection Class Action Lawsuit Investigation

If a lender or debt collector engaged in unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).

Get a Free Case Evaluation Now

DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.